NEW YORK, Sept. 23, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of Pennsylvania on behalf of those who acquired Coinbase Global, Inc. (“Coinbase” or the “Company”) (NASDAQ: COIN) securities during the period of April 14, 2021 to July 25, 2024, inclusive (“the Class Period”). Investors have until November 12, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On July 25, 2024, Reuters published an article entitled “Coinbase UK unit fined for breaching financial crime requirements.” The article stated that Coinbase’s British unit, CB Payments Limited (“CBPL”), had “been fined for breaching a regulatory agreement to improve its defences against financial crime”. CBPL had allegedly provided services to 13,416 high-risk customers, which it had pledged not to do following an assessment by the United Kingdom’s Financial Conduct Authority (“FCA”). The money deposited by high-risk customers was “used to execute multiple cryptoasset transactions via other Coinbase entities, totaling about $226 million.” On this news, the price of Coinbase shares declined by $13.52 per share, from $245.04 per share on July 24, 2024, to close at $231.52 on July 25, 2024.
According to the lawsuit, Coinbase made false and/or misleading statements and/or failed to disclose that: (1) In 2020, the FCA had deemed efforts by CBPL to prevent criminals from using its platform to be inadequate; (2) as a result, the FCA reached an agreement with CBPL, which put requirements in place that were designed to prevent high-risk customers from using CBPL’s platform; (3) CBPL then breached that agreement, which resulted in 13,416 high-risk individuals receiving services; and (4) as a result, the Company had an undisclosed heightened regulatory risk.
If you purchased or otherwise acquired Coinbase securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
